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Housing Satisfaction, Homeownership and Housing Mobility: A Panel Data Analysis for Twelve EU Countries

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  • Diaz-Serrano, Luis

    ()
    (Universitat Rovira i Virgili)

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    Abstract

    We investigate the determinants of housing satisfaction in twelve EU countries. To do so, we use panel data covering the period 1994-2001, which allows us to control for individual heterogeneity. We carry out separate estimates on the determinants of housing satisfaction for homeowners and for renters and observe that: i) the tenure status is critical in determining the level of housing satisfaction; ii) housing satisfaction acts as trigger event of housing mobility, and; iii) dissatisfied renters are more likely to move than their homeowners counterparts. Our results also allow us to conclude that self-reported housing satisfaction is a meaningful variable able to explain individual’s objective economic behavior, since it is able to anticipate movements in the households’ demand for housing.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2318.

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    Length: 48 pages
    Date of creation: Sep 2006
    Date of revision:
    Publication status: published as 'Mobility and housing satisfaction: an empirical analysis for 12 EU countries ' : Journal of Economic Geography, 2010, 10 (5), 661-683
    Handle: RePEc:iza:izadps:dp2318

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    Related research

    Keywords: housing mobility; fixed-effects; homeownership; random-effects; housing satisfaction;

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    References

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    1. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    2. Luis Díaz-Serrano & Joop Hartog, 2006. "Is there a risk-return trade-off in educational choices? Evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 30(2), pages 353-380, May.
    3. Paul Frijters & Michael A. Shields & John P. Haisken-DeNew, 2004. "The value of reunification in Germany; An analysis of changes in life satisfaction?," Paul Frijters Discussion Papers 2004-6, School of Economics and Finance, Queensland University of Technology.
    4. Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2004. "Does Union Membership Really Reduce Job Satisfaction?," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 439-459, 09.
    5. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
    6. Guillaume R. Frechette, 2001. "Random-effects ordered probit," Stata Technical Bulletin, StataCorp LP, vol. 10(59).
    7. Diaz-Serrano, Luis, 2005. "Income volatility and residential mortgage delinquency across the EU," Journal of Housing Economics, Elsevier, vol. 14(3), pages 153-177, September.
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    Cited by:
    1. Switek, Malgorzata, 2012. "Internal Migration and Life Satisfaction: Well-Being Effects of Moving as a Young Adult," IZA Discussion Papers 7016, Institute for the Study of Labor (IZA).

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